Customization: Ideal Varieties, Product Uniqueness and Price Competition
We study customization in the Hotelling model with two firms. In addition to providing ideal varieties, the perceived uniqueness of a customized product contributes independently to consumer utility. We show that only when consumer preferences for uniqueness are high customization occurs in equilibrium.
|Date of creation:||31 Jan 2009|
|Publication status:||published in Economics Bulletin 2009|
|Contact details of provider:|| Postal: 118 Professional Building, Columbia, MO 65211|
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Web page: http://economics.missouri.edu/
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Journal of Economics & Management Strategy,
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- Bernhardt, Dan & Liu, Qihong & Serfes, Konstantinos, 2007. "Product customization," European Economic Review, Elsevier, vol. 51(6), pages 1396-1422, August. Full references (including those not matched with items on IDEAS)
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